Analyzing deal in Charleston

[Colin Stewart]

Hi,

My names Colin. I've been analyzing deals in the Charleston area for few months now. It seems like many of the places I come across that are close to the 1% rule still have pretty thin margins based on how I am running the numbers. In this case the home is $110,000 2 bed 1 bath, supposedly currently rented at $1,000, 20% down, Taxes $1,000 based on not being owner occupied in Charleston county. $1,000 homeowners insurance, $1,300 maintenance, 10% vacancy and 10% management fee. It is not in an area with an HOA. This would put my carp rate at about a 5.7%.

Currently looking for my first deal so, I am curious to see if you all think these are reasonable numbers to have for analyzing the property. Any suggestions would be great if there is any thing I am missing or I am not accounting for.

Thank you,

Colin

[Kristopher Kyzar]

@Colin Stewart The Charleston market has been hot and difficult to get into unless you are a cash buyer.  I'm looking forward to seeing how it is affected by this COVID-19 crisis.  I myself have been, with little success, trying to get into the market there.  I'm not willing to invest with the slim margins that seem to be prevalent.  I'm also investing long-distance, so my team on the ground there have been super patient with me while I wait for the right property.  Keep analyzing deals, and keep looking.  Eventually you'll find the right property, just don't lower your standards to get any property.